Phuket, Samui Villas and Condos Going Unsold
By Alan Morison and Chutima Sidasathian
Tuesday, March 16, 2010


A DISMAL picture of the property development scene on Phuket and Samui emerges from the latest figures provided by the Government House Bank, which specialises in loans for housing.

The Director of the Real Estate Information Centre, Sammana Keetasin, reports that sales all over Thailand are down, but especially on the two holiday islands.

Given low demand, there appears to be an oversupply of both villas and condominiums.

While the latest political protest in Bangkok may not have had a dramatic effect on tourism on Phuket, which is relying more and more on direct flights, the global economic downturn and continuing unrest in the capital appear to have unnerved potential real estate buyers.

On the current figures, Phuket and Samui are experiencing an oversupply that could take years to whittle down.

The expat market is largely a cash market because Thai banks will only grant loans to foreigners in rare circumstances.

Very few sales are being recorded on Phuket and Samui.

Three villas were sold on Samui in Q3 of 2009, the report says, while results have been equally stagnant on Phuket.

On Phuket, the report says, 13 villa projects were offering discounts of between 10 and 20 percent.

Given the outlook, it's little wonder that upmarket villa and condo estates have converted to resorts to retain cash flow and a positive future.

Phuket Villas
80 projects involving 1900 units

Average price: 30 million baht
Sold: 900 villas
Unsold: 1000 villas

Samui Villas
50 projects involving 800 villas

Average price: 29 million baht
Sold: 300 villas
Unsold: 500 villas

Phuket Condominiums
90 projects involving 5000 units

Average price: 8 million baht
Sold: 2780 units
Unsold: 2250 units
(Phuket City studio apartments have proved popular, attracting 44 percent of buyers)

Samui Condominiums
14 condo projects involving 500 units

Average price: 7.4 million baht
Sold: 250 units
Unsold: 250 units